Councillors could see their allowances increased for the first time since 2009 - while they look to find £66 million of further budget cuts at County Hall.

Leicestershire County Council has launched a review the amount paid to the 55 politicians who sit on the authority.

Currently members are paid a basic allowance of £10,152 a year which is often topped up with so called special responsibility allowances (SRAs) if they hold other posts such as committee chairmanships or cabinet roles.

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However the Mercury has seen an unpublished report sent to an independent panel which will make an eventual recommendation on whether the current allowances regime should be changed.

The report asks the panel to consider an annual increase to the basic and special responsibility allowance linked to an agreed indexation figure.

The report says: “In 2009 the basic allowance was increased by an inflationary figure taking it up to £10,152.

“The basic allowance has therefore not kept pace with rises in inflation.

“However, it must be recognised that during this time the county council, like other public sector organisations, has had to face austerity measures and the members were of the view that allowances should not be increased.”

It invited the panel to consider a series of increases - the highest being to £12,156, a 19.7 per cent rise. This is based on how average earnings in Leicestershire have risen but included a public service discount which is the assumed for elements of the job considered voluntary service to the community.

The lowest option is a £539 increase linked to annual pay awards offered to council staff.

The council has also asked to consider existing SRA rise by an inflationary figure and new ones be introduced for deputy committee chairman posts established since the May county council election.

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A county council spokeswoman said: “An independent panel is currently looking at the issue of member allowances, including the level of basic allowance, which has been frozen since 2009.

“Reducing the number of cabinet posts, deleting political assistant roles, pension changes and ending highway forums will save the council £280,000 a year and the panel has also been asked to consider these developments.

“The panel is still considering the proposals and will publish its final report in September.”

County Hall’s opposition Lib Dems have welcomed the review but told the panel: “We disagree with some of the proposals that have been put forward by the Conservative-run administration as we have concerns that some of what has been proposed is to serve the interests of their party, not the interests of the public.”

They say a modest increase to the basic allowance would be sensible because ‘To keep it frozen would gradually devalue it.”

They support an increase to £10,692.

The Lib Dems say there should be no SRA for the new deputy chairs who they say will do ‘absolutely nothing’.

Lib Dem group leader Simon Galton said he understood rank and file Tory councillors had been pressuring party leader Nick Rushton for higher allowances since the election.

Liberal Democrat group leader at Leicestershire County Council Simon Galton

Conservative deputy council leader Byron Rhodes said his party had not submitted any representations to the panel because it was a matter for its members alone.

Coun Rhodes said neither he or Coun Rushton had come under pressure from councillors to push for more allowances.

In 2016/17 just over £900,000 was paid in allowance and expenses to county councillors.

The Conservative council increased its share of council tax by four per cent in April.